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“I’m shaming employers into offering their staff a better deal”

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2 Mar 2018

Salvus Master Trust managing director Graham Peacock outlines his plans to expand the workplace pensions provider’s market share and shares his thoughts on AE.

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Salvus Master Trust managing director Graham Peacock outlines his plans to expand the workplace pensions provider’s market share and shares his thoughts on AE.

Are you involved in any consolidation?

Absolutely. We are directly involved in consolidation right now. The first consolidated master trust should join Salvus in April. There’s a constant interest.

Going back to your point about the DWP and the new rules coming in, as people are finding out how complex this actually is going to be, many are saying: “This is not for us. That’s not why we came into this market, we’re not going to grow big enough,” or “the capital input is going to be too heavy.” I can’t go into who we’re doing this with, but there’s about half a dozen today that are looking to exit the market place who are in touch with us.

One, as I said, will be done by the end of the tax year and a number of others will follow suit. We anticipate probably another £100m of assets between now and the end of the year coming from that consolidation marketplace, then we’ll be left with 20 or so master trusts.

What are you focusing on in 2018?

Our growth plan is that we’ll be at £200m by the end of the year, when we will be accruing. This is an estimate, but something in the region of £150m of new contributions will be coming in a year. So, it doesn’t take a scientist to work out that we’ll be about £500m in two to three years.

We’re at £3bn already and another £1bn coming in from workplace pensions in the next five years is on the cards. If we see more consolidation and more secondary market, where people have three or four pension schemes and want to move them into one coherent provider, then my numbers could be massively off, but off in a positive way that we could smash those numbers much earlier. We’ve got three pension schemes just now, and if they come in it would give us another £250m this year.

That’s three employers with existing schemes. If they bring them over to us that would double our assets overnight. We’ve got to model all these things and I will underestimate this, because I’d much prefer to under-promise and over-deliver.

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